A real estate short sale is a sale of property in which the sale proceeds fall short of the balance owed on the property’s loan or loans.
Sacramento’s Broken Real Estate Market has recently been a perfect storm for short sales.
There have always been short-sales. Since people started buying real estate…. eons ago… Market prices go up and market prices go down, and if a homeowner has to sell when they are upside-down… well, you get the picture.
Homeowners can have many reasons to sell their home in a Short Sale; any time there is a reduction in marketprice (value) along with the need for relocation, sickness, job loss, death or divorce, there is no other way besides just letting the bank take it back. So Short Sales are the best solution to keep a homeowner out of foreclosure when it is clear they cannot keep the home…
But in this economy, Sacramento shortsales most often occur when a homeowner just cannot pay the loan payment on their property. With Sacramento unemployment at 12.3% and a 41 month long drop in median home prices that has taken over 55% off the 2005 highs in Sacramento County. Sacramento Short Sales are now over 20% of the market!
Short sales in Sacramento have become a popular pre-foreclosure option to keep homeowners out of foreclousure, when loan modifications just don’t provide a solution to foreclosure